AAIC Investment Pte. Ltd., headquartered in Singapore and led by CEO Susumu Tsubaki, is thrilled to announce that the Africa Innovation & Healthcare Fund (“AHF2”), managed by AAIC Investment, has gained new support from prominent financial institutions and publicly-listed companies. The combined size of AHF1 and AHF2 now stands at an impressive $87 million, with a strong focus on nurturing the growth of innovative African companies that promote sustainable economic development and address critical social challenges.
In a strategic move, the Development Bank of Japan (DBJ), QR Investment Co., Ltd (part of the Hokkoku Financial Holdings Group), TOPPAN Holdings Inc., and other prominent entities have committed to invest in the Africa Innovation & Healthcare Fund. These new investors will leverage their networks and resources to facilitate collaborations between Japanese enterprises and AHF2’s portfolio companies, creating exciting co-investment opportunities for businesses in Africa.
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AAIC Investment first blazed a trail in 2017 with the launch of Japan’s inaugural African fund, the Africa Healthcare Fund (AHF1), which primarily supported 30 healthcare-focused companies, closely aligned with the Sustainable Development Goals (SDGs). AHF2, the fund in focus, has concentrated its investments on 15 companies specializing in digital healthcare and emerging technologies such as remote diagnosis, artificial intelligence (AI) diagnostics, pharmaceutical distribution, FinTech, and InsurTech. These investments have been pivotal in driving the growth of African startups, particularly in the wake of the COVID-19 pandemic.
With the successful second closing of AHF2, the collective assets managed by AAIC Investment in AHF1 and AHF2 now amount to approximately $87 million (equivalent to approximately 13 billion yen). This remarkable achievement brings the total number of supported companies to an impressive 45, showcasing a steadfast commitment to fostering innovation and economic growth in Africa.
Distinguished companies such as Asahi Intecc Co., Ltd., Eisai Co., Ltd., Ohara Pharmaceutical Co., Ltd., and Marubeni Corporation have already joined the ranks of AHF2 investors, further highlighting the fund’s significance in the realm of African innovation.
Here are some notable comments from the investors who have joined AHF2:
Yoshio Yamaguchi General Manager of Growth & Cross Border Investment Department, Development Bank of Japan Inc. “Through AHF2, we are investing in startups with cutting-edge technology, particularly in the healthcare sector. In Africa, a continent grappling with diverse social challenges, we see the potential for AHF2 to drive transformative economic and social development, akin to a leapfrog. We anticipate AAIC Investment’s support for Japanese companies’ global expansion, which, in conjunction with local investment activities, will contribute to the sustainable growth of African economies and societies.”
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Fumio Hamano President, QR Investment Co., Ltd. “African countries, poised for future economic growth, grapple with numerous social challenges that must be addressed for their well-being. Our investment in AHF2 aligns with our shared goal of achieving ‘sustainable economic growth’ and ‘solutions to social issues’ in Africa. We aspire to play a pivotal role in advancing the development of both African nations and Japan through collaboration with Japanese enterprises.”
Takao Ikeda Managing Executive Officer, Global Business Division, TOPPAN Holdings Inc. “We have chosen to invest in AHF2 due to our strong interest in the burgeoning African market. We believe this fund leads the African healthcare sector by selecting companies from a diverse range of countries and viewpoints. We look forward to the value that our technology and solutions will bring, fostering new businesses and enhancing corporate value through collaborations with AHF2 portfolio companies.”
Overview of AHF2
- Fund Name: Africa Innovation & Healthcare Fund
- Target Countries: Various nations across Africa, with a keen focus on Kenya, Nigeria, South Africa, and Egypt.
- Target Sectors: Medical and healthcare, along with technology-driven companies in social infrastructure fields including finance, insurance, and logistics.
- Investment Stages: Series A and B
- Ticket Size: Ranging from $200,000 to $5 million
Overview of AAIC Investment
- Company Name: AAIC Investment Pte. Ltd.
- Headquarters: Singapore
- CEO: Susumu TSUBAKI
- Year of Incorporation: 2013
- Main Business: Established in 2013, AAIC Investment is the fund management arm of AAIC Holdings. It initially supported the Corporate Venture Capital (CVC) efforts of Japanese corporations in 2014, before venturing into Africa with the launch of the Africa Healthcare Fund (AHF1) in 2017. In 2022, AAIC Investment introduced the Africa Innovation and Healthcare Fund (AHF2). As of September 2023, AAIC Investment has invested in 45 companies through AHF1 and AHF2.
Charles Rapulu Udoh
Charles Rapulu Udoh is a Lagos-based lawyer, who has several years of experience working in Africa’s burgeoning tech startup industry. He has closed multi-million dollar deals bordering on venture capital, private equity, intellectual property (trademark, patent or design, etc.), mergers and acquisitions, in countries such as in the Delaware, New York, UK, Singapore, British Virgin Islands, South Africa, Nigeria etc. He’s also a corporate governance and cross-border data privacy and tax expert.
As an award-winning writer and researcher, he is passionate about telling the African startup story, and is one of the continent’s pioneers in this regard